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Demand for mortgages in the US fell by 9.4% last week, even ...

Demand for mortgages in the US fell by 9.4% last week, even as mortgage rates fell to 6.8%.
How can mortgage demand be down even as rates are down 130+ basis points from their recent highs?
The answer to this question is that the effective outstanding mortgage rate is 3.7%.
90% of borrowers currently have interest rates below 5%.
Even if mortgage rates fell to 5%, the vast majority of borrowers would still have a financial disincentive to sell.
Particularly as investors accounted for many of the homes purchases since 2020.
Affordability getting worse, even with lower rates.
Demand for mortgages in the US fell by 9.4% last week, even as mortgage rates fell to 6.8%. How can mortgage demand be down even as rates are down 130+ basis po...
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